mailup presents a marketing technology...

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MAILUP PRESENTS

"A MARKETING TECHNOLOGY STORY”ABOUT SAAS, BIG DATA, MACHINE LEARNING, CHATBOTS AND MORE

May 2017 mailupgroup.com

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INTRODUCTION


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16,000+customers worldwide

14+ BILLIONmessages sent every year

141Employees

OVER €21MNGroup Revenues (+129% 2016 vs 2015)Mainly recurring revenues from SaaS

3 CONTINENTSArgentina, Denmark, Italy, Spain, and US and a JV in Japan

400 MILLIONContacts database

MAILUP GROUP @ A GLANCE Leading industrial group active in the field of marketing technologies, with a focus on data driven omnichannel marketing automation


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WIDE, COMPLEX, SEGMENTED REFERENCE INDUSTRY

• Marketing Technology industry: wide, complex and segmented• MailUp Group addresses a continuum of

segments within the marketing technology industry• MailUp Group is one of the very few B2B

players that targets both marketers (end users) and developers

FROM EMAIL AND MOBILE MARKETING TO DATA DRIVEN OMNICHANNEL MARKETING AUTOMATION


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INNOVATION-LED MARKET IN FAST AND CONTINUOUS EVOLUTION

A YOUNG ANDFAST-PACED INDUSTRYIN CONTINUOUS EVOLUTION


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0

5

10

15

20

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2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

MAILUP GROUP MILESTONES: MOVE OR DIE

(*) Consolidated as of 2015FY (**) Consolidated as of 2016FY (***) IPO promise delivered (Forecasted Revenues 2016E Euro18.2mn)

2006SMS, Fax, Voice are

added to the offered services

2006API Introduction

2014Developer platform

2014IPO on AIM Italia stock market (2013A Revenues Euro 6.3mn)

2015Acquisition of Acumbamail (*),

Agile Telecom (**) Globase (**)

2015BEE plugin

2016BEE is spun-off and becomes an independent business unit

2016> Euro 21mn

Revenues (***)

2017MailUp 9 is introduced in February, improving some of the features that were yet available on the previous version as well as introducing new ones.

2017ONWARDS

Marketing technology +

Developers

2004eCommerce was launched

Established in 2002 as a mere e-mail service provider (ESP), over the last 15 year MailUphas kept growing through both organic growth and strategic M&A in order to fit market evolution and demand and becoming a fully integrated marketing technology group

Euro mn

May 2017

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MAILUP GROUP NOWADAYS – MULTIPLE ENTITIES…


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• Ca. 30% of Revenues from abroad

A WIDESPREAD GEOGRAPHIC FOOTPRINT

• Operations in three continents– Europe– America– Asia

• Through recently established JVs, MailUp has operations in Asia as well.


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…WHERE “THE WHOLE IS GREATER THAN THE SUM OF ITS PARTS” (ARISTOTLE)

MESSAGING FACTORY(AGILE T.)

PROFESSIONALSERVICES

(GLOBASE)

HEAD, STRATEGY, SHARED SERVICES

(MAILUP SpA)

FREEMIUM PLAYER(ACUMBAMAIL)

INTEGRATED MARKETING PLATFORM

(MAILUP 9)

EDITOR SPECIALIST(BEE)


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THE “HOLY” MAP OF INTRAGROUP SYNERGIES

EMAIL EDITOR

EMAIL EDITOR

EMAIL EDITOR

MESSAGING SERVICES

MESSAGING SERVICES

PROFESSIONAL SERVICES

FREEMIUM TOOL


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MAILUP SPA


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BROAD-SHOULDERED COMPETITIVE POSITIONING

LEADERin Italy in the email and sms marketing / marketing automation segment

AMONG THE TOP THREE PLAYERSin Italy for messaging technology

AMONG THE TOP FIVE-TENplayers in Europe

LARGER PLAYERS• Prefer to offer bundled-only services;• Provide customers' with expensive solutions that only large

corporations can actually afford;• Have limited flexibility / integration possibilities with other solutions.

Protected from both above and below due to pricing and strength of product, in a market with high barriers to entry

SMALLER PLAYERS• Have constrained possibilities, since the initial tech investment to

bear to enter is market is really high;• Do not provide customers with consulting services and offer only low-

quality solutions;• Have limited cross selling opportunities.


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MARKET LANDSCAPE

SMALL BUSINESS

<$30 / month $30/250 / month

MEDIUM BUSINESS

$250-500 / month $500-700 / month

LARGE BUSINESS

$700-15K / month >$15K / month

GETRESPONSEEMARSYS

CAMPAIGN MONITORICONTACTAWEBER

MAILCHIMPCONSTANT CONTACT

BRONTOMAILUP

DOTMAILERMARKETOADESTRA

EMAIL VISIONIBM MARKETING CLOUD

SALESFORCE MARKETING CLOUDADOBE CAMPAIGN

ORACLE MARKETING CLOUD

Large and diversified players vs small but focused ones


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KEY COMPETITIVE ADVANTAGES

Multi Channel

Best in class Email Editor

“Get what you want” approach

Plug & Play

No material debt

Optimal price / mix positioning

High versatility / flexibility


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MAILUP 9 @ WORK

AUTOMATED WORKFLOWS INCLUDE BOTH EMAIL & SMS

NEWLY REDESIGNED INTERFACE TEAM COLLABORATION DYNAMIC, PERSONALIZED DASHBOARD


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MARKET LANDSCAPE$15B+ in M&A Activity Since 2010, Recent Marketo acquisition at 7.5x Revenues

Announcement Date Bidder Target Transaction Value

(USD, mn) EV / LTM Sales Target Description

July 2016 Oracle Netsuite 9,300 10.3x NetSuite provides integrated cloud business software suite, including business accounting, ERP, CRM and ecommerce software. In 2015 it acquired Bronto.

May 2016 Vista Equity Partners Marketo 1,800 7.5x Marketo's marketing automation software helps marketers to engage customers

and prospects.

April 2016 Vista Equity Partners Cvent 1,600 7.1x Cvent provides online software for Event Management, Web Surveys, & Email

Marketing as well as a global event venue directory.

April 2015 Netsuite Bronto 200 6.7x Bronto Software is a commerce marketing automation provider, enabling retailers to drive revenue through their email, mobile and social campaigns.

April 2014 IBM Silverpop Not Disclosed(Hint: 270)

Not Disclosed(Hint: 3x)

Now powered by IBM, Silverpop is a cloud-based digital marketing platform that provides email marketing, lead management and mobile engagement solutions.

December 2013 Oracle Responsys 1,500 7.7x Leading email marketing and cross-channel solution now from in Oracle Marketing Cloud.

June 2013 Salesforce ExactTarget 2,500 8x Currently known as "Salesforce Marketing Cloud" is a provider of digital marketing automation and analytics software and services.

December 2012 Oracle Eloqua 871 9.7x Currently known as Oracle Eloqua, delivers marketing automation and revenue performance management software.

October 2012 ExactTarget Pardot 96 9xNow powered by Salesforce, Pardot is a leading marketing automation platform that helps marketers create more leads, generate more pipeline, and empower sales to close more deals.

August 2010 IBM Unica 480 4.1x Now offered as IBM Omni-channel marketing, Unica software delivers personalized experiences across channels to increase customer engagement.


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OTHER GROUP COMPANIES


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AGILE TELECOM – THE MESSAGING FACTORY

• Highly segmented reference market, where small-sized players compete among each other and also large TELCOs play their role

• Mobile marketing does not include SMS only, new technologies generally outpace a firm capability to keep running matching the industry necessities

• Price-Leader in Italy (vs. Mobyt and Rdcom)• Top quality client base (e.g. high tech companies)• Competing globally with players such as CLX

Communications, Infobip, CLX, Linkmobility

• Inbound - Outbound SMS management• MNP database access

• Effective and efficient SMS procurement strategy• Offering best execution in SMS delivery to both end-users

and wholesalers• Highly flexible and scalable platform

Market Environment

Competitive Positioning

Italy-based A2P and Wholesale messaging services providerIt offers both high-quality and standard services

Products

Business Model


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ACUMBAMAIL – THE FREEMIUM PLAYER

• Highly segmented reference market• Market players attempt to get large customers number

by reaching as many unsophisticated customers as possible

• Reference market: Price-conscious end users• Most important local competitors: Mailrelay,

EmailManager, FromDoppler, E-Goi, Envialosimple

• Email marketing• Editing tools• Mobile messaging

• 100% in-bound marketing• High flexibility i.e. unbundling of email and mobile

solutions• Freemium approach• Mostly subscription based (monthly fee) • Lean, effective, scalable structure

Market Environment


Spain-based freemium email marketing platformIt represents MailUp's way to access the Spanish-speaking universeBorn as a pure email marketing services provider, it now offers also mobile messaging

Business Model

Products


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GLOBASE – THE PROFESSIONAL SERVICES COMPETENCE CENTRE

• Highly sophisticated and quality-oriented market• High barriers to entry

• Reference market: mid-large corporates requesting for more than mere email marketing services i.e. professional services / consultancy

• Local competitors: Apsis, Mailplatform, Agillic.• International competitors are: Salesforce (Marketing Cloud),

Oracle (Marketing Cloud), Adobe Campaign.

• Proprietary digital marketing software platform• Consultancy in digital marketing / marketing automation• Email marketing• Mobile messaging

• Few clients, but large and well served• Highly fidelized customer base• Direct sales network

Market Environment


Denmark-based expert in technology, implementation, and execution of effective dialogue marketingGroup's arm in Nordic countries

Business Model

Products


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BEE – THE EMAIL EDITOR SPECIALIST

• Cloud market i.e. global by definition• Two sides: professional end users (email designers, digital

agencies) and developers (SaaS applications)

• Addressing the whole spectrum: free, paying, and developers• Top quality client base (e.g. high tech companies)• Global competitors: Taxiforemail, EDMDesigner, Litmus Email

Builder

• BEE Free, basic version for non-paying end users• BEE Pro, top version for paying end users• BEE Plugin designed for developer that want a full

integration of email editor with their systems (i.e. developers connection)

• Internally developed and financed (ca. €750k seed capital)• 100% inbound marketing (250.000 active users monthly)• Full scalability

Market Environment


SaaS email editing toolDesigned in Silicon Valley, developed in Italy

Business Model

Products


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GROUP GROWTH STRATEGY


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COMPLETION OF CROSS FERTILISATION EFFORT

BY GEOGRAPHY

BY PRODUCT

BY LEGAL ENTITY

THE UNBUNDLED APPROACH REMAINS THE RULE


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NEW GEOGRAPHIC AREAS

WHITE LABELLING

e.g. Denmark

JOINT VENTURES

e.g. Indonesia, Japan


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NEW MODULES TO DRIVE HIGHER ARPUS

SHORT TERMSingleCustomerView

CustomerJourneyManagement

MEDIUM TERMNewplatforms(instantmessaging)Big data&machinelearning


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AudienceSegmentation;72%

Customerjourneymapping/analysis;67%

Personalisation;54%

Marketingautomation;49%

Predictivemodelling;21%

Lookalikemodelling;17%

Noneoftheabove;8%

Which of these data-related functions does your organization practice?

BIG DATA MONETISATION

• Business is now based on Data and how to leverage it is the number one question for marketers (*)

• Possible Big Data utilization in the e-marketing cycle

• Understand / predict customer needs and behaviour

• Optimise marketing budget allocation and marketing mix decisions

• Deliver more targeted and personalised communications

(*) Extract from “The New Marketing Reality” report, produced by Econsultancy in association with IBM Watson Marketing

MAILUP GROUP’S “BIG DATA” GOLDMINE

400MN CONTACTS14BN MESSAGES SENT EVERY YEAR


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SPECIFIC BUs GROWTH STRATEGIES

• Financial restructuring finalization• Reference market extension to attract medium-

sized companies • Increase email marketing penetration

• New functions and new solutions development• Exploiting both intragroup growth opportunities

and stand alone ones• Growth in Silicon Valley on premium brand

clients

Agile Telecom• Maintain price-leading positioning• Increase market share• Adding new tools and marketing solutions to

customers

• Home market: push mobile messaging penetration• Italy: start addressing low-end segment with

freemium approach• Worldwide: add-on for BEE users

NEW VALUE-ENHANCING FUNCTIONS AND UPGRADES I.E. MAILUP 9


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TO BE OBTAINED THROUGH:


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EFFICIENT INTERNAL DEVELOPMENT & WELL-EDUCATED EXTERNAL GROWTH

Product design activity Made in California

R&D quality mentioned in the relevant press (e.g. Hacker News, Product Hunt backed by investors such as Google, Ycombinator and so on)

Targets: Small Marketing Technology companies active in segments contiguous to MailUp’scurrent ones

Keep on exploiting MailUp’s capabilities


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GROUP FINANCIALS


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WELL DESIGNED CAPITAL AND SHAREHOLDERS’ STRUCTURE A fully committed and well mixed management team, working together since 2002

LA

LUCA AZZALIFOUNDER / MANAGER

14.90%

NAZZARENO GORNIFOUNDER / MANAGER

14.90%

NG

MATTEO BETTONIFOUNDER / MANAGER

14.68 %

MB

ALBERTO MISCIAFOUNDER / MANAGER

14.90 %

AM

GIANDOMENICO SICASHAREHOLDER/MANAGER

0.88%

GS

MATTEO MONFREDINIFOUNDER / MANAGER

14.73 %

MM

11.33TOTAL # OF SHS (MN)

€ 2.00MARKET PRICE

€ 22+ mnMARKET CAPITALIZATION

€ 0.95 mnNET CASH(€MN)

€ 0.06 mnMINORITY INTEREST@ BOOK

€ 26+ mnTOTAL ENTERPRISE VALUE

TOTAL SHARES: 83.52% + 16.48% FREE FLOATMay 2017 mailupgroup.com

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EACH COMPANY ADDS VALUE TO THE GROUP

Stable revenuesHigh cash generation

Strong ebitda margin and cash conversion,Solid cash positioning

Stable ebitda margin in the 30% region High cash conversion

Very high clients' arpuFinancial restructuring ongoing

10% mom growth rate


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2015 20162015 2016

HIGH REVENUES VISIBILITYLast Twelve Months (LTM) graphs on various legal entities revenues evolution.

Total 2016:9,562,441

Total 2015:8,442,184

Total 2016:9,581,545

Total 2015:7,941,647


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2015 2016

Total 2016:166,167

Total 2015:7,654

HIGH REVENUES VISIBILITYLast Twelve Months (LTM) graphs on various legal entities revenues evolution.

2015 2016

Total 2016:415,888

Total 2015:266,289


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SOLID CASH GENERATION CAPABILITY & STRONG FINANCIAL FLEXIBILITY

FAVOURABLE WORKING CAPITAL DYNAMICS

<0% / SALES

NO MATERIAL CAPEXespecially for Agile & Acumba

10% / SALES

NO BADDEBT

0% / SALES

WELL BALANCEDFINANCIAL STRUCTURE

0% NET DEBT / EQUITY


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THE IAS TRANSITION(€mn, FY2015) IT GAAP IAS Adj. IAS/IFRS

INCOME STATEMENTRevenues 9.37 (0.06) 9.31Other incomes 0.15 0.00 0.15

Value of Production 9.51 (0.06) 9.46EBITDA 1.08 (0.41) 0.67D&A (1.06) 0.25 (0.82)EBIT 0.02 (0.16) (0.14)Net Profit (0.01) (0.10) (0.11)

BALANCE SHEETNFA 12.18 2.85 15.03Working Capital (5.12) (3.89) (9.01)M/L Term non financial liabilities 0.82 0.03 0.85

Capital Employed 6.24 (1.07) 5.18Group Net Equity 7.27 (1.07) 6.20Net Fin Position 1.02 0.00 1.02


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OUR LATEST FINANCIAL RESULTS

31/12/2016 % VoP 31/12/2015 % VoP Δ Δ%Revenues from Email 8,505,404 39.30% 6,911,710 73.08% 1,593,699 23%

Revenues from SMS 11,305,163 52.24% 2,198,108 23.24% 9,107,055 414%

Revenues from BEE 150,160 0.69% 6,899 0.07% 143,261 2077%

Revenues from Professional Services 1,129,279 5.22% 101,133 1.07% 1,028,146

Other 551,826 2.55% 239,637 2.53% 312,189 130%

Total Value of Production 21,641,838 100.00% 9,457,487 100.00% 12,184,351 129%

COGS (11,562,589) (53.43%) (3,800,717) (40.19%) (7,761,873) (204%)

Gross Profit 10,079,249 46.57% 5,656,770 59.81% 4,422,478 78%

EBITDA 2,414,211 11.16% 674,446 7.13% 1,739,766 258%

EBIT 1,185,943 5,48% (141,214) (1,49%) 1,327,157 (940%)

EBT 1,127,801 5.21% (116,709) (1,23%) 1,244,510 (1066%)

Net Income (Loss) 812,367 3,75% (100,492) (1,06%) 912,859 (908%)


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KEY INVESTMENT HIGHLIGHTS


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REASONS TO INVEST IN MAILUP GROUP

Strong market positioning

Solid R&D background

High cash generation

M&A experience

Exploitable synergies ahead

Brilliant financial position


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APPENDIX


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MAILUP GROUP’S CLIENTS ACROSS INDUSTRIES16.000+ CLIENTS INCLUDING:


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